Wasn't sure if this was the best forum ask this, but for any folks with corporate banking experience, what made you choose corporate banking over other areas (like IBD) and what kind of technical questions could I expect?
As to why corporate banking: For me, the main reason is that I think it’s an area where I can add value the most, having prior experience in banking regulations, and also because I like the idea of analyzing in detail the drivers of a company’s performance as opposed to valuing a company on a holistic basis. But I’m not sure how acceptable of answer that would be.
Also, I've researched the forums and it seems like I should expect similar technicals to IBD, but probably with a stronger focus on debt. Is that correct?
What is Corporate Banking
Corporate banking (also known as business banking) tends to deal with lending capital and selling services towards small and mid-sized businesses.Corporate banking is often a crucial profit center for most banks as it provides a vast majority of regular write-down loans. These services may include:
- Loans and other credit products
- Treasury and cash management services
- Trade financing of bill collection, letters of credit
Corporate Banking vs Investment Banking
While Corporate banking may seem like a more relaxed alternative to investment banking, there are downsides to this choice, namely lower pay and worse exit opportunities. However, @IBBD makes a great claim as to why corporate banking may be more appealing:
1. Long term career potential - not much of an "up and out" culture like in IBD. As long as you are competent, you can move into an associate role after your third year in most places. You won't need to go back for an MBA to advance. Also to get from associate to VP in the credit path, you won't need to be able to generate business to move up as you would in IBD.
2. Better hours / work-life balance
3. You manage risk if that is something you are interested in. The spread on senior bank debt is low, so you need to be careful when making a decision as you will have to originate a huge multiple of your loss in new money just to be able to cover it.
4. You develop a solid foundation in cash flow analysis and learn about collateral (depending if it is ABL group or middle market lending vs. large corporate).
5. Corp banking is very relationship focused.
6. Ability to move from client management/credit/risk, so you can have a very varied career depending on how you position yourself and what your interests are.
7. Can be a generalist or cover industry vertical depending on what group you are in.
Corporate Banking Potential Interview Questions
As with any other interview process you can be asked both technical and behavioral questions.
@b2banker provides some helpful examples as to some technical questions to prepare for:
As far as technicals go I would know:
-Accounting type questions: how the 3 main financial statements interact
-Basics of how to evaluate a credit worthiness of a company
-An understanding of the role / industry, what banks do, what you will be doing, etc.
-As far as technicals are concerned if you have the WSO/M&I technicals down tight (ignoring all of the valuation, etc. type stuff) you will be good to go.
If you have any experience regarding potential interview questions and your overall experience in corporate banking please comment below!
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Corporate banking is like a mix a cross in between an IB product group and a coverage group. CB is segmented by industry verticals and you delivery debt products to companies (revolvers, term loans, bridge financing, etc).
In your underwriting you will be doing plenty of company analysis (financial / operational) and industry analysis. With that said you will have a better understanding of your industry and how your clients operate in it than a Lev. Fin analyst who will be doing all models all day but has no clue about how these companies operate. You also have long term career potential in CB as you can directly promote to Associate, VP, etc without having to go back for an MBA.
As far as technicals go I would know: -Accounting type questions: how the 3 main financial statements interact -Basics of how to evaluate a credit worthiness of a company -An understanding of the role / industry, what banks do, what you will be doing, etc. -As far as technicals are concerned if you have the WSO/M&I technicals down tight (ignoring all of the valuation, etc. type stuff) you will be good to go.
Let me know if you have more questions.
I am really interested in getting into a corporate finance development program, but I am coming from a non-business degree. What should I do to prepare for this, and is it even possible? I'm hoping to end up in corporate strategy, and think this would be a great place to start out, while really gaining finance and accounting experience.
I am really interested in getting into a corporate finance development program, but I am coming from a non-business degree. What should I do to prepare for this, and is it even possible? I'm hoping to end up in corporate strategy, and think this would be a great place to start out, while really gaining finance and accounting experience.
I am a fresh MBA graduate. I have an interview with HSBC for corporate banking profile. However, I don't know what should be my answer to "Why Corporate Banking?"
Help! JP Morgan Mid-Corporate Banking Interview THIS WEEK! (Originally Posted: 03/29/2010)
I have an interview this week with JP Morgan's Mid-Corporate Banking Group. Looking for some info other than what I have found on the Internet. Interview process, types of questions asked, recent deals, etc. Any knowledge of this group would be tremendously helpful!
Thanks in advance.
I wouldn't expect anything too technical probably mostly fit. This is no an Ibanking internship and i hope you realize the difference between commercial lending and leveraged finance.
Other than knowing a banks balance sheet and the difference between bank lending and IB type dept it will be entirely behavioral and fit.
BAML - Corporate Banking interview (Originally Posted: 10/29/2012)
Hello guys,
I have an interview with Bank of America Merrill Lynch for a corporate banking internship. To be honest, I do not know much about "corporate banking". I targeted the DCM department first but via my network they told me that they have a free slot in the corporate banking and asked if I am interested in that too. Additionally, they told me that it is kind of a relationship department.
The internship will take place in Germany (I am German), but I really do not know what I should expect in the interview. Can you all give me some advice? What should I prepare? Where should I focus on?
Any input is much appreciated! :)
Best regards, mott
http://www.wallstreetoasis.com/forums/difference-between-corporate-inve…
Corporate banking = lending to large companies with 2+ bil of revenues. Think term, revolver loans as well as syndicated loans.
Know what you need to look at to evaluate a company's credit worthiness as well as basic financial statement interactions, etc. If you have the technical guide from WSO or BIWS/M&I you will be more than ready.
Citi Corporate Banking Interview (What do they do?) (Originally Posted: 02/20/2013)
Hey guys I have a first round phone interview w/ Citi Corporate Banking for SA position and would like to ask anyone for a heads up. I've only done IB intership before and I know a very little about what corporate banking is and what the team does. Can anyone shed a light on what Citi corporate banking is like and what to expect for their SA interview? Thanks always!!
This is for their SF office
its usually behavioural interview, unstructured... chill and show that you are a nice/interesting person; follow up and thank afterwards
Usually phone interviews are more on the fit side. For the superday, know your financial statements, what types of credit facilities you can provide to companies, what makes a good borrower type of questions.
TD Securities Corporate Banking Credit Management Interview -2014 Associate (Originally Posted: 10/21/2013)
Hi all, has anyone who interviewed for the first round heard back for the superday?
Thanks
anyone? Thanks!
Wells Fargo Summer Financial Analyst--Commercial & Corporate Banking Interview (Originally Posted: 01/22/2014)
I have an upcoming interview with Wells Fargo for the SFA corporate and commercial banking division. Wondering if anyone who's been through the SFA program could tell me about it. Also, what types of questions I should expect (behavioral, technical)?
Interviewed with their Corp Banking group last year for SA. 1st round was 70% tech and 30% fit. Tech mainly consisted of accounting/fin analysis; no valuation. Linking the 3 financials, run throughout the components of an income statement and CF statement, depreciation through the 3 financials, what questions would you ask when making a loan.
Fit was your typical strengths/weaknesses, did you get any feedback from prior internships, etc.
similar for real estate?
No clue for RE. Assuming it is RE focused.
Went through the SFAP program last year as a GIB intern (specialized group within commercial banking). When I initially applied, the commercial banking and corporate banking programs were posted as two separate positions. However, they interviewed for all positions at the same time which was slightly confusing as they didn't tell anyone beforehand. I would suggest asking your recruiter what groups are looking for summer interns (RCBO, GIB, Sponsors, etc.) so you can tailor your responses to whatever position interests you the most.
Interviews were pretty standard. 1st round was primarily "fit" questions, and "walk me through your resume". 2nd round was a superday with 6 back-to-back interviews. A lot more technical, but nothing difficult - what TGICapitalism posted. Know what EBITDA is (the majority of final round candidates I had talked to were stumped by this.. how, I have no idea). Also, you should be able to identify the most important financial statement from a lending perspective.
I'd be happy to answer any other questions you may have about the interview process or the program in general. Good luck with your interview!
Hi TopApe, the final round for commercial banking is this Friday. Any specifics on the technicals one should brush up on before heading into this? 6 interviews back to back?! That's somewhat terrifying.
The interviews are mainly behavioral to ensure you "fit" within the group. There may be one technical question, but its mainly to get a feel for your knowledge of how the financial statements fit together.
I have an interview at a Canadian Big 4 bank for a Corporate Banking summer internship.. any tips/what to expect? (Originally Posted: 01/11/2015)
The internship would be specifically in a credit analytics position. I am wondering if I should expect technical IB questions, or more behavioural and market questions? Additionally, can anyone give me some suggestions as to why corporate banking? Right now, my thoughts are fewer hours than IB and the option to learn modelling and conduct industry/economic analysis. Thanks in advance!
You need to give us a better description of the position. Generally, credit analytics is a middle-office type role where you're analyzing a bank's loan portfolio or trading portfolio. In other words, you're assessing the firm-wide exposure to different industries, overall credit risk, etc. and making recommendations to the credit approval committee.
If the above description fits the job description, it's unlikely you'll encounter many of the traditional IB technical questions. However, you should know your three financial statements and their relationships cold, be familiar with credit risk, know bank covenants and what they do. Never mention that you want less hours in an interview regardless of whether it's true or not either.
Thanks for your help! The description I have been given is pretty general, basically states that the internship would be an introduction to Corporate Banking and require researching market data, analyzing financial statements, and performing risk analysis and due diligence. There wasn't much further mention of the credit analytics other than that title itself. Thanks!
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